DoD's $49.6M R&D Contract with IBM for Physical Sciences Research: A Deep Dive
Contract Overview
Contract Amount: $49,604,474 ($49.6M)
Contractor: International Business Machines Corporation
Awarding Agency: Department of Defense
Start Date: 2008-10-24
End Date: 2014-12-31
Contract Duration: 2,259 days
Daily Burn Rate: $22.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: COST NO FEE
Sector: R&D
Official Description: SYNPASE
Place of Performance
Location: SAN JOSE, SANTA CLARA County, CALIFORNIA, 95120
Plain-Language Summary
Department of Defense obligated $49.6 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: SYNPASE Key points: 1. IBM secured a significant $49.6 million contract for R&D in physical sciences. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Potential risks include the long duration (2259 days) and the specific nature of R&D, where outcomes can be uncertain. 4. The sector is Research and Development, specifically within Physical, Engineering, and Life Sciences (except Biotechnology).
Value Assessment
Rating: fair
The contract value of $49.6 million for a 2259-day R&D effort needs to be benchmarked against similar, complex research projects. Without specific per-unit cost data or comparable contract values, a precise pricing assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The taxpayer impact is tied to the effectiveness and efficiency of the R&D conducted. If the research yields valuable advancements, the investment will be justified.
Public Impact
Advancements in physical, engineering, and life sciences could lead to new technologies and capabilities for the Department of Defense. The long-term nature of the contract suggests a focus on foundational research with potentially significant future applications. IBM's involvement indicates a reliance on established industry expertise for critical research initiatives.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may lead to cost overruns or scope creep.
- R&D outcomes are inherently uncertain, posing a risk to expected results.
- Lack of specific performance metrics makes it hard to gauge immediate value.
Positive Signals
- Awarded through full and open competition.
- Leverages expertise of a major technology provider (IBM).
- Focus on critical R&D for national security.
Sector Analysis
This contract falls under the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for innovation but can be subject to long lead times and uncertain outcomes, making benchmarks difficult without specific project details.
Small Business Impact
The data indicates this contract was awarded to a large business (IBM) and does not specify any small business set-asides or subcontracting requirements. Therefore, the direct impact on small businesses appears minimal for this specific award.
Oversight & Accountability
Oversight would typically involve regular progress reports, milestone reviews, and technical evaluations by the Defense Advanced Research Projects Agency (DARPA) to ensure the R&D is progressing as intended and funds are used appropriately.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Advanced Research Projects Agency Programs
Risk Flags
- Long contract duration (2259 days).
- Uncertainty inherent in Research and Development projects.
- Cost No Fee contract structure places risk on the government.
- Lack of specific performance metrics in provided data.
- Potential for scope creep over an extended period.
Tags
research-and-development-in-the-physical, department-of-defense, ca, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $49.6 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. SYNPASE
Who is the contractor on this award?
The obligated recipient is INTERNATIONAL BUSINESS MACHINES CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Advanced Research Projects Agency).
What is the total obligated amount?
The obligated amount is $49.6 million.
What is the period of performance?
Start: 2008-10-24. End: 2014-12-31.
What specific technological advancements or research outcomes are expected from this $49.6 million investment, and how will their achievement be measured?
The expected outcomes are not detailed in the provided data. However, for R&D contracts, success is typically measured against predefined research objectives, milestones, and the successful demonstration of new capabilities or scientific understanding. DARPA's oversight would focus on whether the research progresses towards these goals, even if the ultimate application is years away.
Given the 2259-day duration, what mechanisms are in place to manage potential cost increases or shifts in research priorities over such a long period?
Long-duration contracts often include clauses for contract modifications, cost adjustments based on economic price indices, and periodic reviews to adapt to evolving research landscapes. DARPA likely employs phased funding and regular technical reviews to ensure continued relevance and manage risks associated with long-term R&D projects.
How does the pricing structure (Cost No Fee) align with the inherent risks and uncertainties of R&D, and what is the potential return on investment for taxpayers?
A 'Cost No Fee' (CNF) contract means the contractor is reimbursed for allowable costs but receives no profit. This structure is sometimes used for R&D where the outcome is highly uncertain, shifting risk to the government. The return on investment is realized if the research leads to breakthroughs that provide a significant strategic or economic advantage.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Offers Received: 10
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: 650 HARRY RD, SAN JOSE, CA, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $49,604,474
Exercised Options: $49,604,474
Current Obligation: $49,604,474
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2008-10-24
Current End Date: 2014-12-31
Potential End Date: 2014-12-31 00:00:00
Last Modified: 2014-06-10
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